Welcome to Reality. Mind the ledge.
1 and 2 only lead to 3 when business stops increasing wages to keep pace with inflation, while still raising prices, abetted by a president who de-coupled the dollar from gold completely and in perpetuity. Thanks, Tricky Dicky!
Not inflation-averaged, but still makes the point: New car prices have gone up 600% since the 1970s. You, however, don't likely make 6x what your old man made in 1970.
College education: the tulipomania of the 21st century, and the next bubble likeliest to burst.
Mind the professors leaping from the ivory tower in 3, 2, ...
But you'll be able to get a great lesson on art history from your local barrista pretty soon; if they don't already have a degree in that.
Pay attention here: health care spending is purchased by the government (for Medicare, etc.) at 2 cents on the dollar, something neither you nor your insurance company can do.
And when doctors and hospitals raised your costs (and your insurance company's costs, since you seldom get the actual bill, until recently) to cover subsidizing granny and grandpa, the price for everyone else not covered by Uncle Sugar launched to Saturn. (Clever econ historians will note the massive breakpoint started in 1965, after LBJ created Medicare to ape and rival FDR's Ponzi scheme, Social Security, for biggest wealth transfer in generational history.)
You'll also note that houses, college, and medical care are the exact items fully and solely underwritten by government programs (we'll overlook the massive .gov bailout of two of the Big Three automakers in 2009ish). IOW, once government says "Hey, we'll get that check, and you can pay us back", the prices for those commodities (houses, college education, and medical care) suddenly decoupled from all economic reality, and approach a trajectory towards the sun, in a matter of years.
Almost like the mechanics of prices as explained by supply and demand behave with some order, exactly as predicted by Adam Smith in 1776. Weird, huh?